Registration of Power of Attorney not compulsory
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The power of attorney is a legal and valid document and cannot be rejected solely on the ground that it is not registered, writes C.H.Gopinatha Rao
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It is not compulsory to register General Power of Attorney (GPA). Though the Registration Act makes this clear there is a wide belief that Power of Attorney needs to be registered.
As early as 1979, the Supreme Court in the Syed Abdul Khader Vs. Rami Reddy and others case (AIR 1979 SC 553) has made this clear.
Again, in July 2009, the Madras High Court, in its judgment in the case involving Mrs.B.Maragathamani and Chennai Metropolitan Development Authority (CMDA), has reiterated this.
In the above mentioned case, when an application was submitted for regularisation of an apartment complex, the CMDA rejected it on the ground that the GPA accompanying the application was not registered.
The counsel for the CMDA argued that though there was no specific provision under the Building Regulations requiring for a registered power of attorney, the office order (No. 18/2007 dated 25 July 2007) had directed that “henceforth Registered Power of Attorney shall be insisted for all planning permission applications".
The division Bench said such an office order had no legal sanctity in the absence of any provision empowering the Member Secretary to impose such a restriction.
The question as to whether a power of attorney should be registered or not should be decided only with reference to the provisions under Section 17 and 18 of the Registration Act.
The court observed that a perusal of the authorisation given by the owners does not indicate any transfer of title or interest or any other matter covered under Section 17 and for that matter even under Section 18 of the Registration Act. Apart from that the Power of Attorney has been signed by a Notary.
Under Section 85 of the Indian Evidence Act the court shall presume that every document purporting to be a power of attorney and signed by a Notary Public was so executed and authenticated.
The Court observed that the power of attorney in question would be considered to be a valid and legal document for the purpose of making an application for regularisation and such application cannot be rejected solely on the ground that it is not registered.
The reason of misuse cannot be a ground to insist for a registered power of attorney as in this case.
With the above observations the Court rejected the impugned order by the CMDA.
The Member Secretary, CMDA was directed to consider the application submitted by the power of attorney and pass orders within 12 weeks from the date of receipt of copy of this order or production of the same by the petitioners.
The author is former National President, Institution of Valuers.
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